Ethereum Pushes Against Key Resistance as Chart Shows Signs of “Strong Bid”
- Ethereum has been largely tracking Bitcoin’s price action as of late, but its swings have been far more tempered as it hovers within the $1,300 region
- The cryptocurrency has been showing some signs of strength, with bulls ardently absorbing all the intense sell pressure it has faced in recent times
- This indicates that there’s a significant number of investors keen on gaining exposure to ETH, providing it with a strong bid during all dips
- Where it trends will somewhat depend on Bitcoin undoubtedly, but it is currently pushing up against a key resistance level that may soon break
- One analyst is comparing the present price action to that seen in November, which means that a massive upsurge could be imminent
Ethereum has been consolidating throughout the past few days and weeks, with buyers and sellers both reaching an impasse as it largely trades within the mid-$1,300 region.
At the moment, $1,380 is the key resistance level to watch, as sellers have been ardently trying to guard against a break above this level.
Once broken, however, ETH could see a massive upswing that leads it to new all-time highs, which is a possibility that one analyst is closely watching.
Ethereum Consolidates as Bulls Build Strength
At the time of writing, Ethereum is trading down marginally from its recent highs of just over $1,400 set yesterday afternoon.
The crypto is now well-within a consolidation phase that has done little to provide insights into where it may trend in the mid-term.
Bitcoin and its continued reaction to the resistance that sits in the mid-$30,000 region should provide some insights into where major altcoins like Ethereum will trend next.
ETH Shows Signs of Strength Despite Consolidation
One trader explained in a recent tweet that Ethereum could be gearing up for a major push higher similar to that seen by the crypto in November before it exploded into the $1,000+ region.
He also notes that the buying activity on each dip indicates that the bid for ETH is quite strong.
“Noteworthy that $ETH has spent almost entire month hovering near 1300s. Quite similar to its behaviour in November when price exploded up right after at the beginning of month and never looked back. BID is STRONG.”
Image Courtesy of Mohit Sorout. Source: ETHUSD on TradingView.
So long as Bitcoin remains steady, there’s a strong possibility that Ethereum will soon see a large move higher.
Featured image from Unsplash. Charts from TradingView.
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